Skip to main content

RadioShack seeks CFO


Longtime RadioShack adviser Holly F. Etlin has been tapped once more as interim CFO, replacing John Feray. Citing personal reasons, Feray resigned Sept. 12, just a day after the company posted its 10th straight quarterly loss.

Etlin, a managing director of AlixPartners, has already served as RadioShack's interim CFO, from July 2013 to Feb. 2014.

RadioShack warned in a regulatory filing it may seek bankruptcy protection, with a possible sale or third-party investment as other potential avenues to remedy its ongoing financial woes.

The company reported a net loss of $137.2 million in the second quarter — more than double the $52.2 million loss reported in the year-ago period. Net revenue for the quarter fell 22% to $673.8 million from $861.4 million. Same-store sales plunged 20%.

The retailer cited “lackluster consumer interest in the current handset assortment,” as well as heavy promotional activity among wireless carriers and a general decline in the consumer electronics market as factors in its continued poor performance.

“We are working to address our challenges head-on and focus on profitable sales by improving the technology we use to sell mobile phones and bringing in new wireless offerings,” said Joseph C. Magnacca, CEO of RadioShack. “We believe that, long-term, our adjusted approach to mobility will position it as an important contributor to our overall business."

RadioShack ended the quarter with $30.5 million in cash and $152 million available to it on its credit agreement. The company’s total debt was $658 million and doesn’t come due until 2018 and 2019.

RadioShack is currently working to restructure its debt with existing creditors and landlords. Analyst firms including Moody’s and Wedbush have recently warned that RadioShack is in danger of running out of operating capital, and hedge fund Standard General LP, RadioShack’s second-largest shareholder, is reportedly trying to negotiate a “rescue package” by obtaining debt and equity financing from outside investors.

This ad will auto-close in 10 seconds